Sec. 1. 22 MRSA §254, sub-§2, as amended by PL 1999, c. 401, Pt. KKK, §1 and affected by §10 and c. 531, Pt. F, §2, is further amended to read:

2. Income eligibility. Income eligibility of individuals must be determined by this subsection and by reference to the federal nonfarm income official poverty level, as defined by the federal Office of Management and Budget and revised annually in accordance with the United States Omnibus Budget and Reconciliation Act of 1981, Section 673, Subsection 2. If the household income, as defined in subsection 9, is less than 185% of the federal poverty line applicable to the household, the individual is eligible for the basic and the supplemental program. Individuals are also eligible for the basic program and the supplemental program if the household spends at least 40% of its income the amount by which household income exceeds 185% of the federal poverty line on unreimbursed direct medical expenses for prescription drugs and medications and the household income is not more than 25% higher than the levels specified in this subsection. For the purposes of this subsection, the cost of drugs provided to a household under this section is considered a cost incurred by the household for eligibility determination purposes.__The amount of benefit available to a person whose eligibility is established by spending on drugs an amount in excess of 185% of the federal poverty line is limited to the difference between household income and 185% of the federal poverty line;

SUMMARY

This bill revises the income eligibility limit for the Elderly Low-cost Drug program. It repeals a provision that adds up to 25% to the income limit for households spending 40% of income on unreimbursed drug costs. It adds a provision that adjusts the income limit upward by the full amount over the income limit that is spent on unreimbursed drug costs and limits the benefit under the program to the amount of that difference.